IRS Per Diem Rate Update: What Freight and Logistics Operators Need to Know

## IRS Per Diem Rates: One Method Stable, One Higher Freight and logistics operators should take note of the latest Internal Revenue Service per diem guidance, which delivers a mixed picture depending on which calculation method a company uses, according to FreightWaves. The IRS has confirmed that per diem rates — the daily allowances employers can reimburse employees for travel-related expenses such as lodging, meals, and incidentals without those payments being treated as taxable income — will follow two different trajectories for the coming period. One calculation approach will remain stable, while the other will see an upward adjustment. ### Why This Matters for Maritime and Freight Businesses Per diem policies are a routine but important element of financial planning for companies operating across the freight, logistics, and maritime sectors, where employees frequently travel between ports, terminals, and client sites. The method a company selects for calculating per diem reimbursements can have meaningful consequences for both administrative overhead and overall compensation costs. Businesses that have opted for the method now trending higher may need to revisit their travel budgets and internal reimbursement policies to ensure compliance and accurate financial forecasting. Those using the stable method will have more predictability heading into the next planning cycle. ### Choosing the Right Approach The IRS generally allows employers to use either the standard per diem rates published annually or an alternative high-low method that applies a simplified two-tier rate structure based on whether travel occurs in a high-cost or standard-cost locality. The divergence between these two approaches in the current update underscores the importance of reviewing which method best suits a company's operational footprint and workforce travel patterns. Freight and maritime industry finance teams are advised to consult with tax advisors to assess the impact of the updated rates on existing travel and expense policies, and to ensure that reimbursement practices remain aligned with IRS guidelines. *Source: FreightWaves*